Factors Affecting Innovation and Total Factor Productivity of Paper Packaging Industry in Thailand

Abstract

            This study aimed to examine: 1) factors affecting total productivity, 2) firms’ internal factors influencing innovation and total productivity, 3) problems, obstacles and suggestions regarding an increase in total productivity of packaging industry in Thailand.  The study used primary data through questionnaires collecting from 225 entrepreneurs in packaging industry via cluster sampling method, and in-depth interviews from 19 experts and academic persons via purposing sampling one. Secondary data from relevant agencies were also gathered in the study. Content analysis, pair-comparison approach and quantitative analysis, i.e. percentage, mean, standard deviation and multiple regression analysis were employed for analyzing the data. 

            The research found that: 1) firm’s size, levels of production process and product innovation usage, investment value and main product affected total productivity at .01 statistical significant level  with adjusted R² as 0.755.  Levels of innovation usage in production process and product had positive relationship with total productivity. Large firms and those with cardboard as main products tended to have higher total productivity than smaller firms and those with corrugated paper, respectively. 2) Concerning pair comparison: firm’s policy; strategy; management; high executives’ behavior, attitudes and involvement in technological development activity were found to have contribution in firm’s innovation capability building and productivity. 3) Main problems of industry comprised high operation costs and shortage of business strategic researchers, whereas obstacles included personnel ability development in response to changes, and knowledge transfer. Suggestions involved exposing clear policy and strategy from top executives, creating internal flexible management system, conducting communication within the organization for personnel perception to have behaviour towards the same goal, and building good relationships and cooperation between business alliance in exchanging information and technology for deriving mutual innovation benefits.